Lotte Energy Materials (020150) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Lotte Energy Materials makes copper foil — copper rolled thinner than a human hair — and is a Lotte Group materials subsidiary that produces battery foil for the anodes of EV and ESS batteries and circuit foil (HVLP) for high-speed signal transmission in AI data centers at plants in Iksan and Malaysia. In its preliminary first-quarter results on May 11, 2026 it confirmed a narrower operating loss and a swing to net profit, and in April it decided on a new capital investment (about ₩49.0 billion, due for completion at the end of 2027) in high value-added circuit foil for AI and semiconductor substrates. The point worth watching lately is that, having passed the trough of the battery-materials downcycle, its growth axis is shifting from EV battery foil to ESS and AI circuit foil, and with a debt ratio of 33% and a current ratio of 4.7x it has the strength to weather the recovery; but a full-year operating profit is not yet confirmed, and results swing heavily with cost and inventory effects from copper prices and with the downstream demand cycle.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Copper Foil” (Secondary Batteries · Battery Materials, Parts & Equipment), a type typically read first through EV/EBITDA.
Copper-foil production is capital-intensive, carrying big plant and depreciation costs, so net income alone understates the core business's cash generation. That makes EV/EBITDA — operating cash before depreciation, together with debt — the first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
That said, earnings are swinging with the industry cycle right now, so this metric is best viewed alongside asset value and the demand backdrop.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue fell 24.9% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 1.2% higher than a year earlier.
- ROE is -9.5% (controlling-interest basis). It is below the sector average.
- Operating margin is -21.4%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Lotte Chemical 46.94% (corporate)
Controlling bloc incl. related parties 46.96%
With the controlling bloc holding 47%, the ownership structure is stable.
🔎 In-depth analysis Reading
Lotte Energy Materials makes copper foil. Copper foil is a metal film of copper rolled thinner than a human hair, and it is used in two places. First, battery foil is a key material in the anode of a lithium-ion battery, supplied for electric vehicles (EVs) and large energy storage systems (ESS). Second, circuit foil is a thin copper film used in printed circuit boards (PCBs) and semiconductor substrates; in particular, demand is rising for very-low-profile (HVLP) circuit foil used for high-speed signal transmission in AI data centers. Its production bases are Iksan in Korea and Malaysia, and it is raising cost competitiveness by expanding Malaysia's No. 5 and No. 6 plants. Its largest shareholder is Lotte Chemical and others, at about 47%, making it an operating subsidiary that forms one axis of Lotte Group's materials business.
The latest close is ₩31,250 and the market capitalization is ₩1.6 trillion. The price sits above its 20-day moving average (₩30,300) and below its 60-day moving average (₩44,933). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 45.2, a neutral level. The one-month change is -12.7%, the three-month change is -60.2%, and the position relative to the 52-week high is -60.2%. Relative strength versus the KOSPI is 38 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 38% of all stocks. Over the past three months it lagged the index by 49.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The 2025 results were a loss. ROE (how much is earned in a year on equity) was -9.5%, the operating margin -21.4% and the net margin -23.3%, so profitability was badly impaired. With earnings negative, the P/E (how many times one year's earnings the share price is) cannot be computed. So this company is better viewed by P/B (how many times net assets the share price is) than by P/E, and the current P/B is 1.05x. Financial safety is sound. The debt ratio (debt versus equity) at about 133% is not excessive, and the current ratio of 4.7x leaves ample short-term liquidity. Net debt (total borrowings less cash) is ₩76.3 billion, which is not large. That said, the FCF yield (the ratio of cash actually generated to market cap) is -4.1%, as continued expansion investment means cash is still a net outflow. Judged only on last year's loss-making metrics it looks burdensome, but this should be read bearing in mind that these are numbers stamped at the bottom of the battery-materials cycle.
Looking at the five-year trajectory, a company that was posting operating profit of ₩70.0-84.7 billion in 2021-2022 swung to operating losses for three straight years from 2023 as it met an industry downcycle of weakening EV battery demand and falling selling prices (2025 revenue of ₩677.5 billion, -24.9% year on year). Up to this point it is a clear slump. But a sign of an inflection appeared in the first quarter of 2026. Revenue was ₩159.8 billion, similar to the year-earlier quarter, but the operating loss narrowed sharply to about ₩5.0 billion and net profit swung to a gain of about ₩3.9 billion. There are two reasons behind this. One is productivity gains at the Malaysia plant and cost improvement from higher copper prices; the other is that the business axis is shifting from low-margin EV battery foil toward ESS battery foil and high value-added circuit foil for AI and semiconductor substrates. An expansion is under way to raise circuit-foil capacity from 3,700 tons in 2025 to 16,000 tons in 2027, and battery-foil demand is also on a recovery track as the North American ESS market expands. In short, last year's loss metrics are a picture of the trough, and this year the loss narrows while, toward next year, earnings power revives — which is closer to the facts.
Recent disclosures support the direction of the recovery. On April 28, 2026 it decided, via a voluntary disclosure, on a new capital investment in high value-added circuit foil (about ₩49.0 billion, due for completion at the end of 2027) — a capacity expansion to meet demand for AI and semiconductor substrates. On May 11 it disclosed preliminary consolidated first-quarter results, confirming the narrower operating loss and the swing to net profit. In late April it held two investor briefings (IR) to communicate the direction of its business transition, and in May a series of business-restructuring-type disclosures followed, including the disposal of shares in another company and debt guarantees related to a subsidiary. Overall, the narrative of "high value-added transition through expansion plus confirmation of the earnings trough" is emerging through the disclosures.
The points to watch are clear. The strengths are that, having passed the trough of the battery-materials downcycle, an inflection signal emerged in the first quarter with a narrower operating loss and a swing to net profit, and that the growth axis is shifting from the slumping EV battery foil toward high value-added circuit foil for ESS and AI data centers, backed by expansion. The balance sheet, with a debt ratio of 33% and a current ratio of 4.7x, also has the strength to weather the recovery period. The point to note is that a full-year operating profit is not yet confirmed, and the first-quarter net profit contains elements that can swing quarter to quarter, such as cost and inventory-valuation effects from copper prices. In addition, given the nature of the battery and materials sector, results are heavily driven by selling prices and the downstream demand cycle. In sum, it is an early-recovery phase: if ESS and AI circuit-foil demand and expansion volumes come on as planned, the earnings recovery accelerates; conversely, if downstream battery demand softens again, the landing into profit could be delayed.
🔎 Valuation vs peers Undervalued
Compared mainly against domestic makers of copper foil (battery and circuit foil) and secondary-battery materials. As the sector is broadly in a downcycle and mostly loss-making, position is judged by P/B rather than P/E.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Solus Advanced Materials | 0.00x | 0.70x | -9.70% |
| SKC | 0.00x | 4.77x | -88.26% |
| POSCO Future M | 406.67x | 3.17x | -0.25% |
(a) The true peer set — domestic copper-foil and secondary-battery materials makers — generally carries a high P/B even when earnings are depressed. SKC is at 5.9x and POSCO Future M at 3.58x. This stock's P/B of 1.24x is one-fifth to one-third of theirs, a clear discount. Fellow copper-foil maker Solus Advanced Materials is lower at 0.87x, but taking scale and financial strength (a debt ratio of 33% and a current ratio of 4.7x) into account, Lotte Energy Materials is relatively more stable. (b) Because last year was a loss, the P/E cannot be computed, but when a materials stock is at the bottom of a downcycle, last year's profit and loss do not explain the present. In fact, first-quarter utilization rose from the 40% range to the mid-60s and net profit swung back to a gain. The direction — circuit-foil expansion and demand for ESS and AI substrates — is not yet fully reflected in the metrics. (c) That said, operating profit is still a loss and the first-quarter net profit contains cost and inventory effects from copper prices. It is therefore more accurate to read it as "undervalued with substantial scope for re-valuation once the recovery takes hold" rather than to declare it flatly undervalued.
Price history Close · MA20 · MA60
The latest close is ₩31,250 and the market capitalization is ₩1.6 trillion. The price sits above its 20-day moving average (₩30,300) and below its 60-day moving average (₩44,933). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 45.2, a neutral level. The one-month change is -12.7%, the three-month change is -60.2%, and the position relative to the 52-week high is -60.2%. Relative strength versus the KOSPI is 38 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 38% of all stocks. Over the past three months it lagged the index by 49.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -49.76% / 6M -33.24% / 12M -36.41%
Key metrics Computed vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.95x is in line with the sector median (0.86x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is -9.5%, below the sector average (4.0%). The operating margin is -21.4%. The debt ratio is 24.1%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $568.3M | $633.8M | $476.0M | -24.91% ↓ slower |
| Operating profit | $8.3M | -$45.3M | -$102.0M | — |
| Net profit | -$22.9M | $4.4M | -$110.7M | -2601.09% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $483.9M | $512.4M | $568.3M | $633.8M | $476.0M |
| Operating profit | $49.1M | $59.6M | $8.3M | -$45.3M | -$102.0M |
| Net profit | $44.1M | $30.8M | -$22.9M | $4.4M | -$110.7M |
| Revenue CAGR | 4-yr avg -0.41% | ||||
Revenue fell 24.9% year over year (2023 ₩809.0 billion → 2024 ₩902.3 billion → 2025 ₩677.5 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is -0.4%. The two-year revenue CAGR is -8.5%. In the most recent quarter (Q1 2026), revenue was 1.2% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 24.9% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-04-28FilingDecision on a new capital investment (about ₩49.0 billion) to address high value-added circuit foil, due for completion at the end of 2027Grounds for medium-term earnings strength and product-mix improvement through expanded circuit-foil capacity for AI and semiconductor substrates. Source
- 2026-05-11EarningsFair disclosure of preliminary consolidated Q1 2026 results — revenue of ₩159.8 billion, an operating loss of about ₩5.0 billion (narrower loss), and a swing to net profit of about ₩3.9 billionShort-term: confirmation of the earnings trough and a signal of improving profitability. Source
- 2026-04-30IRNotice of an investor briefing (IR) — explaining the business transition (ESS and high value-added circuit foil) and the earnings directionMedium-term: market communication of the high value-added transition strategy. Source
- 2026-05-22FilingDisclosures related to business structure, including decisions to dispose of shares and investment securities in other companies and to provide debt guarantees to third partiesMedium-term: business and subsidiary restructuring under way. Source
- 2026-05-15FilingSubmission of the March 2026 quarterly report (consolidated)Grounds for confirming earnings and financial condition through detailed first-quarter financial disclosure. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-22Disclosure
- 2026-05-22Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-11EarningsFair-disclosure notice
- 2026-04-30Disclosure
- 2026-04-30Disclosure
- 2026-04-28Disclosure
- 2026-04-27OwnershipOwnership-change filing
- 2026-04-23OwnershipLargest-shareholder ownership change report
- 2026-03-26OwnershipOwnership-change filing
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.